A leading European insurer needed to modernize its investment strategy to navigate a higher-rate environment and regulatory capital constraints.
The client provides life and savings products across five European markets. Their legacy portfolio was heavily concentrated in low-yielding government bonds, resulting in a negative spread against guaranteed liability rates. Rising interest rates offered an opportunity to de-risk, but required a complex rotation of assets.
The insurer was trapped in a 'yield trap'—needing higher returns to support policyholder guarantees but constrained by Solvency II capital charges on riskier assets. Additionally, their interest rate hedging program was static and expensive, bleeding P&L during the rate hike cycle.
Restored capital buffers and improved long-term profitability.
Diversified sources of return and reduced reliance on public fixed income.
“The depth of Blue Cedarwood's actuarial and investment expertise is rare. They bridged the gap between our risk and investment teams, delivering a strategy that not only solved our immediate solvency issue but positioned us for profitable growth.”
Schedule a confidential strategy session with Blue Cedarwood to map the next phase of your transaction or transformation agenda.
Schedule Consultation